COMMERCE THIRD TERM EXAMINATION SENIOR SECONDARY SCHOOLS (SS 2) EXAM QUESTIONS

SECTION A – OBJECTIVES

INSTRUCTION – CHOOSE THE CORRECT ANSWER FROM THE OPTIONS A – D.

1. ______ is the transmission of meaningful information, feeling, opinions and ideas from one person to another or from one place to another.

(a) Message

(b) Communication

(c) Transaction

(d) Commendation

 

2. ______ is the cost of goods sold at the beginning of the years.

(a) Cost of goods

(b) Sales

(c) Turnover

(d) Opening stock

 

3. ______ is a market in which buying and selling of existing securities of companies take place.

(a) Capital market

(b) Second tier securities market

(c) Money market

(d) Primary market

 

Use the in formation below to answer question 4, 5 and 6, 11, 12, and 13, 17, 18. 

Opening stock – 30,000

Sales – 130,000

Transport – 3,000

Closing stock – 20,000

Purchases – 40,000

Wages – 7,000

 

4. The cost of goods sold, was ______.

(a) Le 65,000

(b) Le 40,000

(c) Le 75,000

(d) Le 50,000

 

5. The gross profit of the business was ______.

(a) Le 10,000

(b) Le 80,000

(c) Le 120,000

(d) Le 90,000

 

6. The Net profit of the business was ______.

(a) Le 140,000

(d) Le 70,000

(c) Le 18,000

(d) Le 57,000

 

7. ______ is an order made by one post office to another specified post office for payment.

(a) Cash transfer

(b) Money order

(c) Business order

(d) Post restante

 

8. ______ is the durable capital of an enterprise which is used Enterprise which is used continuously for further production.

(a) Fixed capital

(b) Liquid capital

(c) Nominal capital

(d) Authorize capital

 

9. ______ is the total amount stated in the memorandum of association.

(a) Working capital

(b) Nominal capital

(c) Capital owned

(d) Capital employed

 

10. ______ is a place where goods produced or bought are kept until they are needed.

(a) Tourism

(b) Market

(c) Ware House

(d) Shop

 

11. The gross profit percentage (%) was ______.

(a) 30.51%

(b) 61.54%

(c) 14.42%

(d) 50.74%

 

12. Net profit as a percentage turnover or sales was ______.

(a) 53.85%

(b) 74.56%

(c) 47.9%

(d) 69.61%

 

13. Expenses as a percentage of sales or turnover was ______.

(a) 10.57%

(b) 26.10%

(c) 54.94%

(d) 7.69%

 

14. ______ is a highly organized market where investors can and sell existing securities like share, Debentures, gift edge, etc.

(a) Foreign exchange market

(b) Money market

(c) Stock exchange market

(d) Insurance market

 

15. The first post office in Nigeria was established in ______.

(a) 1868 in Onitsha

(b) 1895 in Kano

(c) 1856 in Lagos

(d) 1814 in Lagos

 

16. ______ is the amount that is used for the day-to-day running of the business.

(a) Working capital

(b) Registered capital

(c) Liquid capital

(d) Called-up capital

 

17. Average stock was ______.

(a) Le 30,000

(b) Le 25,000

(c) Le 7,500

(d) Le 3,500

 

18. The rate of stock turnover was ______.

(a) 2 times

(b) 5 times

(c) 1 times

(d) 3 times

 

19. ______ is a service provided by the post office to travelers visiting another town.

(a) Poster order

(b) Money order

(c) C.O.D service

(d) Poster restante

 

20. ______ warehouse is a place where goods whose customs duties have not been paid are stored until the duties are settled.

(a) Bonded

(b) State

(c) Manufacturer

(d) Public

 

21. ______ is a document which entitles it’s holder to the goods named on it, which is stored in a specific warehouse.

(a) Actuary

(b) Mate receipt

(c) Warrant

(d) Bond

 

22. ______ is opening stock plus closing stock divided by two.

(a) Liquid asset

(b) Average stock

(c) Working capital

(d) Acid test

 

23. Which of these is not a factor that can increase rate of turn over?

(a) extreme competitors

(b) advertising

(c) price reduction

(d) sales promotion

 

24. SFEM commenced operation in Nigeria on 29th September ______.

(a) 1986

(b) 1845

(c) 1994

(d) 2014

 

SECTION B – FILL IN THE GAPS

25. ______ market is a market established by law for buying and selling foreign exchange at market determinable.

26. ______ is the total net scale of a business unit during a given Period.

27. Current assets minus Current liabilities is equal to ______.

28. ______is the profit made after deduction of expenses.

29. The Nigeria stock exchange market was established in ______.

30. ______ is the act of storing goods produced or bought in a place until they are needed.

 

SECTION C – THEORY

INSTRUCTION – ANSWER ANY THREE (3) QUESTIONS IN THIS SECTION. 

QUESTION 1

A. What is second tier security market (SSM)?

B.. State four advantages and 4 disadvantage of second tier security market (SSM)?

 

QUESTIONS 2 

A. Define working capital.

B. Write four importance of working capital.

 

QUESTION 3

A. List eight services provided by Nigerian Postal Services.

B. Explain any two of your choice.

 

QUESTION 4

Write short note on any fives of the following:

A. Issued capital

B. Turnover

C. Purchases

D. Capital employed

E. Loan capital

F. Carriage inwards

G. Returns inward

H. Paid-up capital

 

QUESTION 5

A. What is communication?

B. State four importance of communication in an economy.

 

QUESTION 6

Ike limited had the following state of affairs as at 31″ December 2024.

Vehicle – £820,000

Furniture – £150,000

Stocks – £380,000

Debtors – £250,000

Creditors – £300,000

Cash in hand – £200,000

Bank overdraft – £50,000

Capital – £1,350,000

 

Calculate:

I. Total fixed assets

II. Current assets

III. Current liabilities

IV. Total assets

V. Working capital

VI. Capital employed

VII. Current ratio

VII. Acid Test/Liquid Ration.